Footnotes for Consolidated Metrics:

1. 1.Revenue by Business Group: In the Spring of 2018, the Intelligent Devices Group (IDG) was created through a combination of the PC & Smart Devices Group (PCSD) and Mobile Business Group (MBG). As a result of this change, the Intelligent Devices Group (IDG), Data Center Group (DCG) now comprise the company’s three major business units. Please see the FY 2018/19 Annual Report for more details.
2. 2.Lenovo employs approximately 28,000 direct labor employees at the corporate level reported in this line.
3. 3.In FY 2018/19, corporate and in-region philanthropy giving were consolidated into one table to simplify reporting and represent the centralization of global philanthropy at Lenovo through the Lenovo Philanthropy Board and Lenovo Foundation.
4. 4.All Geographies in-region and corporate budgets from years past were consolidated into one figure, in alignment with the simplification described in footnote 1.
5. 5.Total contribution to communities through cash contributions and matches, and product donations refers to employee donations. While estimated value of community impact through philanthropy and volunteerism refers to the cost of employee’s time being spent on volunteering.
6. 6.Lenovo’s GHG Emissions and Energy Inventory Specifics:
   • Lenovo started to verify energy and GHG emissions data in FY 2009/2010.
   • At the end of FY 2012/13 Lenovo adjusted its historical Scope 1 and 2 CO₂e emissions data to account for acquiring Medion in Germany and creating joint venture with NEC in Japan. At the end of FY 2015/16 Lenovo adjusted historical Scope 1 and 2 CO₂e emissions data to account for acquiring System x and Motorola Mobility.
   • Lenovo started to report location-and market-based Scope 2 from FY 2015/16. Base year’s and consecutive years’ Scope 2 totals are the same for location and market-based method as product and supplier-specific market-based data were not available in the base year and consecutive years so the location-based results has been used as a proxy for the market-based method.
   • Beginning in FY 2015/16, System x and Motorola Mobility data are included in energy and Scope 3 emissions data.
   • Approximately less than 1% of purchased energy (electricity) is estimated based upon energy use at similar Lenovo facilities with metered usage.
   • Product transportation emissions include key upstream suppliers representing majority of global logistics spend. Note: Upon looking into GHG Protocol standard we decided to re-categorize this to upstream from downstream transportation (from FY 2016/17, previous years were adjusted accordingly).
   • Emissions from waste include nonhazardous waste, hazardous waste and waste water from all manufacturing, R&D locations and some large offices. No product waste is included.
   • Purchased goods and services include suppliers covering 90% of direct global suppliers spend. The RBA Carbon and Water Reporting Tool was used for collection of supplier data. Data was allocated based on revenue.
   • Fuel-and energy-related activities (not included in Scope 1 or 2) include transmission & distribution (T&D) losses from Lenovo’s worldwide purchased electricity and natural gas. A World Bank database and Energy Star Performance Rating document were used for determining T&D loss rates.
   • Lenovo used the current Product Attribute Impact Algorithm (PAIA) notebook, desktop, monitor, tablet, all-in-one, ThinClient and server tool for calculating emissions of Lenovo’s typical notebook, desktop, monitor, tablet, all-in-one, ThinClient and server. The calculated results show emissions distribution by different parts and also for use, packaging, transportation, and end-of-life treatment categories. The emissions associated with use and end-of-life treatment of sold products were estimated on a “narrow” baseline for the typical notebook, desktop, monitor, tablet, all-in-one, ThinClient and server multiplied by sold/shipped product volumes.
   • Emissions from capital goods are based on purchased capital goods in a given year. The 2012 Guidelines to Defra GHG Conversion Factors for Company Reporting, Annex 13 was used for emission factors for different type of capital goods adjusted for inflation rate and exchange rate.
   • Renewable energy generation capacity includes electric solar panels in Shanghai, Hefei and Wuhan China; Morrisville and Whitsett, NC, USA and hot water solar panels in Beijing, China.
7. 7.Water data includes manufacturing, research & development sites and some large offices.
   • Lenovo started to verify waste and water data in FY 2011/12.
   • Beginning in FY 2015/16, System x and Motorola Mobility data are included in water data.
   • In FY 2017/18, the term “water use” was replaced with “water withdrawal,” however, what is being measured is unchanged.
8. 8.Waste data includes site waste from manufacturing, research & development sites and some large offices.
   • Waste data includes processes and operations waste; product waste is reported separately.
   • Lenovo started to verify waste and water data in FY 2011/12.
   • Beginning in FY 2015/16, System x and Motorola Mobility data are included in waste data.
9. 9.Lenovo’s Product End-of-Life Management (PELM) and Product Take Back (PTB) includes materials from customers and Lenovo-owned country returns, manufacturing and R&D scrap, and employee equipment from real estate sites.